| Actual | Previous | |
| Balance | £-26.05B | £-27.22B |
| Imports - M/M | -0.7% | 8.1% |
| Imports - Y/Y | 13.9% | 12.5% |
| Exports - M/M | 2.4% | 0.1% |
| Exports - Y/Y | 7.2% | -6.8% |
Highlights
The UK's trade performance in April 2026 reflects both resilience in external demand and persistent structural pressures on the trade balance. Goods exports increased by 2.4 percent, driven by stronger shipments to both EU and non-EU markets, suggesting that UK exporters continued to benefit from improving international demand and maintained competitiveness across key trading partners.
In contrast, goods imports declined by 0.7 percent. While imports from the EU increased, this was more than offset by a reduction in purchases from non-EU countries, potentially indicating weaker domestic demand, supply-chain adjustments, or a strategic shift in sourcing patterns. The fall in imports would ordinarily provide some support to the trade balance; however, the strength of export growth was insufficient to offset broader pressures elsewhere in the trade account.
Consequently, the total goods trade deficit widened to £26.05 billion in April 2026, signalling that the UK continues to import significantly more than it exports overall. The widening deficit highlights ongoing external sector vulnerabilities and may weigh on economic growth if sustained. While the export rebound is encouraging, policymakers will likely focus on improving export capacity, enhancing productivity, and reducing dependence on imported goods and services to strengthen the UK's long-term trade position.
Definition
The merchandise trade balance measures the difference between imports and exports of goods. The level of the international trade balance, as well as changes in exports and imports, indicate trends in foreign trade and can offer a guide to an economy's competitiveness. Data are supplied by over 30 sources including several administrative sources, HM Revenue and Customs (HMRC) being the largest.
Description
Changes in the level of imports and exports, along with the difference between the two (the trade balance) are a valuable gauge of economic trends here and abroad. While these trade figures can directly impact all financial markets, they primarily affect currency values in foreign exchange markets.
Imports indicate demand for foreign goods and services in the UK. Exports show the demand for UK goods in countries overseas. The pound sterling can be particularly sensitive to changes in the trade deficit run by the United Kingdom, since the trade shortfalls create greater net demand for foreign currencies. The bond market is also sensitive to the risk of importing inflation. This report gives a breakdown of trade with major countries as well, so it can be instructive for investors who are interested in diversifying globally. For example, a trend of accelerating exports to a particular country might signal economic strength and investment opportunities in that country.
The UK's trade balance is particularly susceptible to swings in the oil account and so within the overall goods balance, financial markets will normally focus on the balance excluding oil and other erratic items.